Michigan House panel continues hearings on health exchange called for in federal law

UPDATE: This article has been updated to note the committee hearing lasted well into Tuesday afternoon.

LANSING, MI - A joint Michigan House panel continued to take testimony Tuesday aimed at deciding whether to establish a health care exchange under the federal Affordable Care Act.

Many of the Republicans on the GOP-led panel continue to be skeptical about a health exchange that would be established under a law critics call “Obamacare.” They want to know how it would affect costs and how much control the state would maintain over the online marketplace that would allow individuals and small businesses to buy health insurance.

Rep. Gail Haines, R-Waterford Township, opened the hearing by saying she wants more research done and questions answered “before making any decision to move forward or not with one here in Michigan.”

The committee hearing lasted well into Tuesday afternoon.Testimony was taken from groups including the Michigan Association of Health Plans, Physicians Health Plan of Mid-Michigan and Blue Cross Blue Shield of Michigan -- and that was just the morning session.

Many of the groups were urging the Republican-led House to start moving on the exchange rather than risk missing deadlines and letting the federal government step in to run the marketplace. A representative of the Michigan Association of Health Plans said allowing the federal government to run the exchange “could take some jobs out of Michigan.”

But some Republican lawmakers say they are worried the insurance exchange ultimately would lead to higher costs for the state and for insurance. And many GOP lawmakers questioned whether an exchange would fix affordability and access issues.

Tuesday’s hearing was the second by the House Health Policy Committee and the Appropriations Subcommittee on Licensing and Regulatory Affairs. The panel also had a hearing last week.

Now that the U.S. Supreme Court has upheld the Affordable Care Act, Michigan lawmakers must decide whether to pursue a state-run exchange. The state also could choose to partner with the federal government or to let the federal government run Michigan's exchange. Some Republicans have lobbied to do nothing at this point, wanting to wait until after the November election to see if Democratic President Barack Obama loses a re-election bid or if a movement to repeal the law gains momentum.

The Republican-led Michigan Senate has approved legislation to allow moving forward with a state-run exchange, but the House has not. Republican Gov. Rick Snyder has urged lawmakers to act quickly to ensure Michigan has the most possible control over the exchange.

Democratic lawmakers also generally support establishing a health exchange.

The exchange would act as an online clearinghouse where Michigan individuals and small businesses could shop for and buy health insurance. The state estimates more than 500,000 Michigan residents would be able to come to the marketplace to buy private coverage, and there also would be coordination with Medicaid.

Staff of the Department of Licensing and Regulatory Affairs has recommended moving forward with studying a potential state-run health insurance exchange. The exchange would still be heavily regulated by the federal government, but would give the state more control than the other options.

LARA Director Steven Hilfinger last week asked for House approval to spend a $9.8 million federal grant, which expires in November.

The federal government wants Michigan to file a blueprint with its intent for the exchange by Nov. 16.